Business Process: Supply Chain Management

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Table of Contents

Introduction
Supply chain management process
Objectives of a supply chain process
Best practices in supply chain management
Improvement of supply chain process
Conclusion
Bibliography

Introduction

A business process is a well coordinated sequential task, undertaken to fulfill certain set objectives. Every stage is managed as it contributes to attainment of the set goals and objectives. Generally there are three sets of business processes they are; managerial processes, operational processes and supporting processes

(Slack, Chambers & Johnston, 2010). This papers analysis supply chain management process as a business operational process.

Supply chain management process

Supply chain management aims at providing goods necessary for production in a business. It starts from identifying the materials required for various processes in the company and ends with the supply of those goods. It has a time frame; an efficient process must be completed within a set time frame.

Objectives of a supply chain process

A supply chain management is an internal operation whose results are felt by the internal and final consumer. It has the following objectives;

To ensure that there are quality and quantity supply of goods and services
To ensure that there is a Just in time delivery of goods and services
Control the supply system and attain highest efficiency possible
Reduction of transportation cost, lead time and warehouse costs
Enhance customer service through provision of high quality goods.

To attain the objectives above, a business should embrace best practices.

Best practices in supply chain management

The availability of quality and quantity supplies for manufacturing of goods and services leads to competitive advantage. For an efficient supply chain it should follow the following best practices;

The process should establish supplier-company relation; this relation will mandate the supplier to supply good/service to the company of the right quality at the right time. It will also ensure that goods are supplied at an appropriate cost. Dependability of suppliers is important to ensure that business is conducted efficiently.

The process should develop mechanism that evaluates the quality of goods supplied. Quality levels should be set. The quality of raw materials translates to quality of finished products so their quality is of essence. A value determination mechanism should be set. One competitive strategy is production of quality goods and services.

Adopt a just in time delivery; this means that goods are available when required. The company should undertake an internal audit to establish treads in business suppliers’ requirement and align the procurement department with them. The end result of a just in time strategy is adequate delivery at the appropriate time and bought at the best price possible.

Utilizing computers is another best practice; computers assist in making purchasing decisions since it offers information about the reorder level, lead times and stock remains. This is important parameters in developing an efficient supply chain. Different commercial and homemade packages are in the market and thus a company should choose the one that fits it most (Reijers & Liman, 2005).

Improvement of supply chain process

To improve supply chain management, a company should start by interpolating the gap in terms of inefficiency in their current processes. Market information should also be attained and establish reliable suppliers of goods and services.

In case there is no procurement department, it should be established; however it must work in collaboration with other departments while undertaking its tasks. When adopting an E-supply chain management process, the company should get expertise advice on the model that fits the company (Ward & Glass, 2008).

Conclusion

Business process is aimed at attaining a certain objective in a business. It contributes to the attainment of the overall business objectives. It has a time frame that is predetermined and involves cost. Supply chain management has the main objective to ensuring that at any one time there are adequate supplies to a business, at an appropriate cost and place.

Bibliography

Reijers, H.A. & Liman Mansar, S. (2005) ‘Best practices in business process redesign: an overview and qualitative evaluation of successful redesign heuristics’, Omega, 33 (4), pp. 283-306, Elsevier Science Direct Web. Web.

Slack, N. Chambers, S. and Johnston, R.(2010). Operations Management 6th Edition. New Jersey: Prentice Hall. ISBN: ISBN-13: 978-0273731603 ISBN-10: 0273731602

Ward Jr., M., & Glass, L. (2008). “Inventory Management Systems”. National Petroleum News, 100(1), 24. Retrieved from MasterFILE Premier database.

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